Iomega said that it will acquire ExcelStor, a maker of hard disk drives, security storage and external storage. Iomega said that it will be issuing 84 million shares of common stock in exchange for all outstanding ExcelStor common shares, representing 60% of the fully diluted capitalization of Iomega. Iomega was valued at about $200 million at the time of this writing.
ExcelStor is a subsidiary of Beijing-based Great Wall Technology. According to Iomega, ExcelStor produces more than 20 million hard disk drive-based devices per year; in 2006, the manufacturer recorded revenues of $707.1 million, which compares to about $229 million of sales reported by Iomega for the same time frame.